[quote=flu]Maybe the way I’m looking at it is wrong but I’d like to think in terms of 5 year increments..
1. Investing $140k @ 1% for 5 years produces $7141.
2. Buying a MM condo @ $140k produces an annual income (roughly) of $9200, or $46000 in 5 years.
Wouldn’t property value have to fall more than 27.8% before #1 being better than #2?
How likely is property values gonna fall an additional 27.8% in MM from this point?[/quote]
You also haven’t count in the principal the tenant paid down over that 5 years. Then there’s the tax advantages.
It also depend on whether you’re looking for a short term income or long term income. For me, investment income is more important for when I retire than today.
